Outlook 2013: How Will U.S. Companies Spend?

1/10/2013 11:12AM

Sprawling American conglomerates are generally pretty loaded up with cash these days, after years of cost-cutting. What are they going to do with all that cash in 2013? Tom Gara joins Markets Hub to discuss. Photo: Reuters.

This transcript has been automatically generated and may not be 100% accurate.

... I ... in general some of the industrial conglomerate ... will only be due to cash in twenty thirteen Tonka who rates the Corporate Intelligence plot is here with this month as opposed to get talking about companies ... it's a ... lot of money ... what are they going to do and ... what doctrine that are the big thing is that there are a lot of pressure because ... underlying earnings is getting harder not to come by ... write a dovish cash ... so the car open the temptation to view the cash from a bruised up ... the numbers on the do or share buybacks make the ETF look better ... to have been a dealer turned in a difficult one on the bottom line ... looking over here and in some cases even actually didn't do it should be doing with which it invested in there and business and ... trumpet of the company internally ... yet now you are looking at other posted euro as the industrial companies raising their electric Honeywell ... United technology now what are these guys do they have a comment specifically on the top dollar to plans are for the money or cancel certainty ... required given the given garden permitted to go back to refer to the report said ... there were one for the defender would look to the different wines of and gotten dinner analysts means and if an investor that evening based on ... twenty thirteen to some of the Nordic publicly Fed women to buy back ... some of them said you know when to spend that much on ... ramping up production somewhere on buying from other company looking to Soren for example ... the number of the big news about them in a tough they're planning on that ... the company to give guidance on the growth of its production to ... the Apostle of the week and a ... second look ... well we know that the financial crisis are on suffered companies people like ... the company's day-to-day hat some time to time to get their balance sheets in order right things a little of that that was pointed out getting ... organic earnings growth is hard to come by because the economy is still weak smile on growth in the economy so they've his company is the isthe dilemma semiconductor cash ... without seeing a lot of growth are not the main places to put the cash ... and productively open your books to read productively in the business ... we do it knows relatively well that is really in the money out there I'm interested in one of our money ... could own a bar and getting straight to shareholders in art from companies in the borrowing ... to pay directly dividends or ... share buyback ... Nicobar are catching on another company for UniCredit revolution and why it occurred to ... me that that is gripping Norman instead of a ... roundabout way to growth rather than just selling more of the stuff you make yet and in awe so I went on to cutbacks to actually investing in your own ... dinner production facilities of building new stuff for dinner really investing in the underlying business ... the the really compere cyclical companies that did the father Dr was in ... my dream went on to them and they really crotch ... even harder than the general economy when when when the Dow ... continues to me I think most of his misconception only hear him Company style cast on that one hot ticket all free cash and do it when the ... color balance sheet for reason yes they add one two trillion dollars in cash but ... they're likely to trillion in debt to mean the house to be a good reason to spend that money on the business ... to counterbalance what you're carrying the dead ... not there right now yes not just a bunch of money to the top of the bargain they can do whatever they want with that ... of the fence on the ... but what can you can do is to keep or don't need to do something like that every one of its fleet ... these companies need to fund from the middle to keep shareholders happy ... Ketterer Turner this competitive with all of you who are able to return money on the fifth ... of May from one of the month ... at any impressing produce a lot of this writing is he ... on buybacks or DPS who seem to ... take things like that rate ... yet exactly and you know the numbers to vote on this book read to revert to note ... that to look at ... some company refuted even onto walked off their ... EPS growth next year to be by some of them in a drawer ... or on dividends or in part on the buy the domain of these companies are really ... you know the growing more now than they are doing deals ... as to why it to my earnings and as earnings season ... kid time revenues ... the good news icon carry think you're a much closer ...